By Obas Esiedesa

The Federal Government  yesterday said it has paid about N333 billion to eight electricity generation companies (GenCos) under its power sector debt settlement programme, and launched a second N729 billion bond issuance aimed at clearing more legacy debts and restoring liquidity in the Nigerian Electricity Supply Industry (NESI).

Speaking at an investors’ forum organised by the Nigerian Bulk Electricity Trading (NBET) Plc in Abuja, government officials said the new bond would complete the first phase of the Presidential Power Sector Debt Reduction Programme, which seeks to resolve verified legacy liabilities and attract fresh investment into the electricity sector.

Special Adviser to the President on Oil and Gas, Mrs Olu Verheijen, said the first series of the programme had demonstrated the Federal Government’s commitment to honouring its obligations, helping to restore confidence among investors and market participants.

She disclosed that in February 2026, the government deployed about N501 billion under the first series of the programme, comprising N300 billion in cash and N201 billion in non-cash bond instruments, to settle part of the verified debts owed to GenCos.

According to her, N333 billion has so far been paid to eight participating GenCos covering 17 power plants, while the first coupon payment of about N63.5 billion on the seven-year bond was made in full on July 14, 2026.

She said the timely settlement had enabled participating generation companies to meet obligations to gas suppliers, lenders and operations and maintenance contractors, thereby improving liquidity across the electricity value chain.

“Markets do not reward promises; they reward performance. Capital follows credibility,” Verheijen said, adding that the second series would deepen market liquidity and strengthen the financial foundation required to attract long-term private investment into the power sector.

She described the programme as a development initiative designed to improve electricity reliability, support businesses and enhance Nigeria’s economic transformation.

In his address, the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, said the Federal Executive Council had approved a N4 trillion Power Sector Debt Reduction Initiative after a comprehensive verification of liabilities.

He explained that the debt verification exercise reduced outstanding claims from over N4 trillion to about N3.3 trillion through line-by-line validation of services rendered.

Oyedele said the second bond issuance, valued at about N729 billion, would complete the first phase of the debt settlement programme and extend payments to more generation companies, gas suppliers and other service providers.

He noted that the successful repayment of the first bond coupon had demonstrated the government’s credibility and strengthened investor confidence.

“Investors do not reward intentions; they reward execution. Every commitment honoured today reduces the cost of capital tomorrow,” he said.

Also speaking, the Minister of Power, Mr Joseph Tegbe, said resolving the liquidity crisis in the electricity market was critical to achieving reliable power supply and sustainable economic growth.

According to him, the debt reduction programme is not merely a financing transaction but a key economic reform designed to restore the commercial viability of Nigeria’s electricity market.

He urged pension funds, insurance firms, banks and other institutional investors to support the bond programme, describing it as an opportunity to partner with the Federal Government in transforming Africa’s largest electricity market.

By Elizabeth Adegbesan

The Federal Government of Nigeria (FGN) bond auction in July 2026 was oversubscribed by 45 percent, or N540 billion, attracting total subscriptions of N1.74 trillion against the N1.2 trillion offered by the Debt Management Office (DMO).

This reflects strong investor demand for Federal Government of Nigeria (FGN) debt instruments.

According to the July FGN Bond Auction results released by the DMO yesterday, investors submitted bids worth N1.74 trillion for bonds valued at N1.2 trillion, while total allotments declined by 23.8 percent to N929.32 billion in July, from N1.22 trillion allotted in June.

Three instruments were offered during the auction: the 22.6 percent FGN JAN 2035, the 16.25 percent FGN APRIL 2037, and the 15.45 percent FGN JUN 2038 bonds, with N400 billion offered for each instrument.

Investor interest was strongest in the APRIL 2037 bond, which attracted N665.19 billion in bids from 122 successful applicants.

The bulk of the allotments also went to this bond, totalling N381.46 billion.

The JAN 2035 bond attracted N245.73 billion in subscriptions, while the JUN 2038 bond received N302.13 billion.

Clearing yields for the bonds were as follows: JAN 2035, 18.34 percent; APRIL 2037, 18.35 percent; and JUN 2038, 18.40 percent.

During the auction, the bonds were priced within the following ranges: 16 percent to 22.6 percent for the JAN 2035 bond, 16 percent to 19.58 percent for the APRIL 2037 bond, and 17 percent to 20.45 percent for the JUN 2038 bond.

The results reflect the continued growing appetite among investors for Nigerian government debt, even as allotments tightened compared with previous months.

•Offers 37 blocks to investors, targets 500m barrels reserve addition

Why 13 blocks returned to basket, NUPRC

By Udeme Akpan & Obas Esiedesa

The Federal Government yesterday said the ongoing 2025 Licensing Round is expected to deliver an additional 300,000 barrels per day (bpd) of crude oil and condensate production within three years

Speaking at the Commercial Bid Conference in Abuja, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mrs. Oritsemeyiwa Eyesan, said the new production would support the government’s target of raising national oil output to three million bpd by 2030.

She said: “The assets available in this licensing round have the potential to add about 500 million barrels to Nigeria’s reserves. Over the next three years, once successfully developed, these assets are expected to contribute a minimum of 300,000 barrels per day of crude oil and condensate production.”

Eyesan added that the assets could raise Nigeria’s crude oil and condensate reserves, currently estimated at 37.01 billion barrels, while strengthening the country’s 215.19 trillion cubic feet of gas reserves.

According to her, about 300 companies expressed interest in the 50 assets. Following prequalification, 196 firms qualified, while 143 companies submitted 200 technical and commercial bids covering 37 assets. She disclosed that 13 blocks attracted no bids and had been returned to the licensing basket.

Explaining the development, she said: “Some of these assets are in frontier basins; they have not yet been de-risked. We were not surprised when we saw that some of these assets returned with no bidders. We will do more work to de-risk these assets and bring them back to the market.”

Eyesan said the exercise followed President Bola Tinubu’s directive to ensure transparency and international best practices, stressing that winners would be determined by a weighted combination of technical and commercial scores rather than the highest signature bonus.

She reiterated: “Our message is clear: drill or drop. Work programmes must be implemented, financial commitments honoured and agreed milestones achieved.”

She also announced that President Tinubu had approved another licensing round for 2026, adding that successful bidders would have 90 days to meet post-award conditions or forfeit their licences to reserve bidders.

Reacting, National President of the Oil and Gas Services Providers Association of Nigeria (OGSPAN), Mazi Colman Obasi, said: “The increased upstream investments will undoubtedly translate into higher oil and gas production, which currently stands at about 1.7 million barrels per day, including condensate.”

He added: “The Federal Government’s ?68.32 trillion 2026 budget is based on a crude oil production target of 1.84 million bpd. With sustained upstream investments and successful execution of ongoing projects, Nigeria is expected to record meaningful improvements in oil production over time.”

Also, petroleum economist Prof. Iledare Wumi said: “My reaction is one of cautious optimism. Nigeria is not visionless; rather, it has been execution-deficient. Dreams alone do not transform nations. It takes transformational leadership, institutional discipline and sustained execution to turn vision into reality.”